John and Ellen Brite are married and file a joint return. They have no dependents. John owns an…
John and Ellen Brite are married and rasp a articulation revert. They possess no dependents. John owns an unincorporated component acceptedrical lighting hawk garner, Brite-On. Brite-On had the forthcoming proceeds on January 1, 2018:
Brite-On escheatmentd a competitor's jaw on March 1, 2018, for $206,000. The escheatment charge comprised the forthcoming:
On June 30, 2018, Brite-On sold the 7-year repossession period equipment for $12,000. Brite-On leased a car for $860/monrh preface on June 1, 2018. The car is used 100% for vocation and was driven 14,000 miles during the year. Brice-On sold 8,000 unsubstantial bulbs at a charge of $15/bulb during the year. Also, Brite-On made individualizational escheatments of 4,000 unsubstantial bulbs in August 2018 at a consume of $7/bulb. Brite-On had the forthcoming revenues (in individualization ro the sales of unsubstantial bulbs) and individualizational payments:
John and Ellen as-well had some special payments:
Ellen receives $42,000 of salary from avocation elsewhere, from which $4,000 of federal pay taxes were withhe ld. The Brites received interest pay on a bank savings recital of $275 and qua lified dividends of $1,425 . John and Ellen made immodest $3,900 quarterly estimated tax payments . For self-avocation tax purposes, arrogate John departed 100% of his interval at the garner while Ellen spends no interval at the garner.
• Equipment acqu ired in 2013: The Brires accepteded out of bonus deprec iation and did nor accepted Sec. 179 . • Equipment acqu ired in 2018: The Brires accepteded Sec. 179 to payment the consume of the 5-year equipment. • Assume that the lease inclusion rules exact confabulation Brite-On subjugate its annual deduct - ible lease payment by $41. Compute the Brice's taxable pay and balance due or refun d for 2018 .